How many shares will remain after the repurchase

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A firm has 20 million shares outstanding with a market price of $25 per share. The firm has $10 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt.

#1.) What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.

#2) How many shares will remain after the repurchase? Round your answer to the nearest whole number.

Reference no: EM13273806

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